Industrias Arteb S.A.

completed

Summary Of Project Information (SPI)Project Name:Brazil: Industrias Arteb S.A.     Region:Latin America and CaribbeanSector:Project No:008896Projected Board Date:March 30, 1998Company NameIndustrias Arteb S.A.Technical Partner and/or Major Shareholders Arteb is owned by the by the Eberhardt family, 91.7%, and Reinhold Poersch (Hella) of Germany, 8.33%. Hella is a key technical partner and has long-term technical support agreements with the Company.Project Cost Including proposed IFC investment Total project cost is estimated at US$120 million. IFC is considering a total investment of US$45 million including (i) a loan of US$20 million and (ii) equity of US$5 million, both for its own account and (iii) a loan of US$20 million for the account of participant banks.Location of project and Description of site The project will be implemented in three locations: (i) as an expansion and modernization of the Company’s industrial complex in São Bernardo do Campo, São Paulo, (ii) adjacent to the new General Motors car plant in Gravatai, Rio Grande do Sul, both in Brazil and, (iii) an industrial plot in Rio Segundo, Cordoba, Argentina.Description of Company and Purpose of Project Expansion and modernization of automotive lighting production for Brazil, Argentina and for export. The project will increase production and improve performance through (a) the modernization and expansion of Arteb’s existing plant in São Paulo, (b) the construction of two new plants in Gravatai and Argentina and, (c) optimization of its financial structure.Environmental Category and Issues Category B. Environmental, occupational health and safety issues associated with this project include: air emissions, liquid effluents, solid and hazardous waste disposal, and employee exposure to high temperatures, fumes, noise, and dust. IFC is reviewing environmental information on the Company’s existing operations and, if necessary, will require the Company to take Corrective Action to bring the operations into compliance with World Bank guidelines and local requirements. IFC will monitor compliance with the World Bank’s policies and Guidelines during the life of the project.The will be from the Public Information Center on or about February 20, 1998.Host country location of environmental documentsIndustrias Arteb, Avenida Piraporinha, 1221, São Bernardo do Campo, São Paulo , BrazilDate SPI sent to PIC      February 18, 1998For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711 facsimile: (202) 676-0365Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).